Ok so the game is minecraft, the company is a "server" essentially it's a privately run server that sells different merchandise for the in game. One of the most popular things to buy is a "rank" which provides different featues that a normal member can't have. I bought a $20 rank but then shortly after they banned me from playing on the server for apparently hacking (I wasn't). Of course they have the right to do this but the part I'm concerned about is that the rank came with the allowance of a command, /near, which actually wasn't working. I'm willing to bet it's still not fixed. Btw, the server has a no refund policy but don't they kind of owe me one since they did not provide me what they promised?
If a online gaming company sells me something but part of that something isn't included can I sue?
At this point, no, you can't sue them. There's a legal term simplified means "unclean hands". It means that if you have violated a law, you can't charge someone else for violating the law. Say if I was a drug dealer and one of my customers didn't pay. I have no recourse using the legal system. Same here. Whether or not your password worked if of no consequence.
Ok, so you say you weren't hacking. Prove it. IF you can prove it, then you can sue them for banning you AND for the password not working. Sue them in small claims court for the cost of the service and password. It will cost 20- 199 dollars to file a suit. You can also sue them for defamation of character and file a civil rights suit for them accusing you of hacking, but you've got to have a case.